south australian select committee · 2006. 12. 15. · john hill member for kaurna peter lewis...

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SOUTH AUSTRALIAN

SELECT COMMITTEE on the

MURRAY RIVER

FINAL REPORT

July 2001

South Australian Select Committee on the Murray River Final Report – 2001

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TABLE OF CONTENTS

FOREWORD 3

PRIORITY RECOMMENDATIONS 5

RECOMMENDATIONS 8

1 INTRODUCTION 17 1.1 Appointment of Committee .................................................................................... 17 1.2 Terms of Reference ............................................................................................... 17 1.3 Membership ........................................................................................................... 17 1.4 Committee Powers ................................................................................................ 17 1.5 Chairman’s vote..................................................................................................... 18 1.6 Disclosure of Evidence .......................................................................................... 18 1.7 Conduct of Inquiry.................................................................................................. 18

2. BACKGROUND 19 2.1 Key achievements to date ..................................................................................... 19 2.2 About the Murray-Darling Basin............................................................................. 21

ECONOMIC VALUES 22 SOCIAL VALUES 23 ENVIRONMENTAL VALUES 24

2.3 South Australia’s portion of the Murray-Darling Basin ........................................... 25

3. ADMINISTRATIVE AND INSTITUTIONAL ARRANGEMENTS 27 3.1 Murray-Darling Basin Initiative............................................................................... 28 3.2 Murray-Darling Basin Agreement .......................................................................... 28 3.3 Murray-Darling Basin Ministerial Council ............................................................... 28 3.4 Murray-Darling Basin Commission ........................................................................ 29 3.5 Community Advisory Committee ........................................................................... 30 3.6 Legislative framework ............................................................................................ 30 3.7 State agencies ....................................................................................................... 31 3.8 Statutory bodies..................................................................................................... 32 3.9 Local Government ................................................................................................. 34 3.10 Local Action Planning Groups ............................................................................... 37

4. KEY ISSUES 38 4.1 Institutional framework........................................................................................... 38

MURRAY-DARLING BASIN INITIATIVE 38 INTEGRATED CATCHMENT MANAGEMENT 39 RIVER MURRAY CATCHMENT WATER MANAGEMENT BOARD 41 LOCAL GOVERNMENT 42 LOCAL ACTION PLANNING GROUPS 42

4.2 Salinity ................................................................................................................... 43 MURRAY-DARLING BASIN SALINITY AND DRAINAGE STRATEGY 43 THE SALINITY AUDIT OF THE MURRAY-DARLING BASIN 44 DRAFT MURRAY-DARLING BASIN SALINITY MANAGEMENT STRATEGY 45 FUTURE IRRIGATION DEVELOPMENT 46 SALT INTERCEPTION SCHEMES 46 LAND AND WATER MANAGEMENT PLANS 46 IRRIGATION AND DRAINAGE MANAGEMENT PLANS 47 RIVER MURRAY SALINITY STRATEGY 47


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4.3 The Cap ................................................................................................................. 48 REVIEW OF THE OPERATION OF THE CAP 49 STATUS OF THE CAP 50

4.4 Community involvement ........................................................................................ 51 4.5 Environmental flows............................................................................................... 51

ENVIRONMENTAL WATER REQUIREMENTS 53 WATER TRUST OR ‘ACCOUNT’ FOR THE LOWER-MURRAY DARLING 53

4.6 Water resources and use....................................................................................... 53 COUNCIL OF AUSTRALIAN GOVERNMENTS WATER REFORMS 55 SNOWY MOUNTAINS HYDRO-ELECTRIC AUTHORITY CORPORATISATION 55 LOSSES FROM THE MURRAY-DARLING SYSTEM 58 WATER ALLOCATION, USE AND METERING 58 IRRIGATION 59 WATER TRADING 62 URBAN WATER SUPPLIES 64 WATER QUALITY 64 IMPLICATION OF CLIMATE CHANGE 65

4.7 Biodiversity ............................................................................................................ 65 4.8 Wetland management............................................................................................ 66 4.9 Land use change ................................................................................................... 68 4.10 Inland fisheries management................................................................................. 69

INLAND SALINE AQUACULTURE 71 4.11 Investment in the Murray-Darling Basin................................................................. 71

BASIN SUSTAINABILITY PROGRAM 71 COST SHARING ARRANGEMENTS 72 CAPACITY BUILDING 72 FUNDING AND RESOURCES 73

5. KEY FINDINGS 74 GENERAL 74 INSTITUTIONAL FRAMEWORKS 74 SALINITY 77 THE CAP 79 ENVIRONMENTAL FLOWS 80 COMMUNITY INVOLVEMENT 81 WATER USE AND MANAGEMENT 81 WETLAND MANAGEMENT 84 BIODIVERSITY 84 LAND MANAGEMENT 85 INVESTMENT IN THE MURRAY-DARLING BASIN 85 RIVER MURRAY INLAND FISHERY 86

Acronyms ........................................................................................................................ 88 Glossary of Terms........................................................................................................... 89 Bibliography .................................................................................................................... 93 Appendices

A: Written submissions and papers B: Witnesses before the Committee C: Findings and Recommendation from the Environment, Resources and

Development Committee’s inquiry into Fish Stocks of Inland Waters.


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FOREWORD The Select Committee on the Murray River is pleased to table its Final Report. The River Murray is vitally important to the quality of life enjoyed by all South Australians. South Australia would be in a precarious position indeed if we could not rely on a secure supply of water from the River Murray. Through this Select Committee, the South Australian Parliament has successfully managed to bring together members from various political persuasions and remove the politics to prepare a consensus report that outlines a direction for the future use and management of the River Murray in South Australia. Much has been spoken and written about the sharing, management and use of the land, water and other environmental resources of the River Murray and the wider Murray-Darling Basin. The large body of evidence received by the Select Committee is testimony to this statement. Members of the Select Committee regard themselves as fortunate to have had the opportunity to observe the unique natural beauty of the Murray-Darling Basin, gain an appreciation for the complexities associated with the management of this multi-faceted resource and meet with a range of people from across the Basin who depend on the Basin’s natural resources for their well being. During this inquiry, the Select Committee has become increasingly conscious of the fact that while development of the Basin’s resources has delivered considerable economic and social benefits, these benefits have come at a very significant environmental cost, at both a State and Basin-wide level. The magnitude of this cost is well established in South Australia and the middle reaches of the Basin, but only now becoming apparent in the upstream reaches. If we want the Murray-Darling system to continue to provide economic and social benefits into the future we must change our current approach to the sharing, management and use of the Basin’s natural resources. Having said this, the Select Committee acknowledges that many significant changes have been achieved. There is, however, much more to be done. The new Integrated Catchment Management (ICM) framework, developed by the Murray-Darling Basin Ministerial Council is recognised by the Committee as another important step along the path of change. Particularly encouraging in the ICM framework is its commitment to establish targets for catchment health. This report contains 96 recommendations, and these are relevant at both a State and Basin-wide level. The Select Committee believes that action on all recommendations is essential to improving the health and management of the River Murray, especially in South Australia. In formulating its recommendations, the Select Committee identified a number of underlying themes:

• Adaptive management Our current approach to the use and management of the Basin’s natural resources is not sustainable. Resource management must undergo fundamental change, and this can only be based upon the best available scientific knowledge. As new information becomes available, there will be a need for further change.

• Commitment There are no quick fixes. Improving the health of the Murray-Darling system and moving towards sustainable development will require a long-term commitment by communities and governments.


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• Partnerships No one individual State government, industry group, catchment organisation, research body or conservation group has the necessary skills, expertise or resources to improve the health of the Murray-Darling system. The forging of strong, transparent and accountable partnerships at all levels and across all jurisdictions is essential.

• Investment Current levels of investment are inadequate to combat the scale of the natural resource and environmental degradation impacting on the health of the Murray-Darling Basin.

The River Murray and its environs are the most important natural resource in South Australia. Its economic, social and environmental values affect the lives and well-being of every South Australian. The River Murray in South Australia is indeed ‘a lifeline’ whether it be as a source for a potable water supply; for irrigated horticulture; for dairy farming or for its unique biological resources that support tourism and a variety of recreational activities. Achieving the ecologically sustainable development of the State’s water resources is vital to South Australia’s future prosperity. Nowhere is this outcome more important than in the South Australian Murray-Darling Basin. The tabling of this report brings the work of the Select Committee on the Murray River to an end, but it also marks the beginning of a new era. The era needs to be focussed on achieving the sustainable management and use of the resources throughout the Murray-Darling Basin. The Select Committee would like to take this opportunity to formally acknowledge those organisations and individuals that have provided evidence or given their time to appear as witnesses before the Committee. We would also like to acknowledge the commitment, dedication and skills displayed by the Committee’s Research Officer and Secretary in preparing this report. In commending this report to the House we encourage all members of Parliament to familiarise themselves with its contents. Hon David Wotton MP Chairman Select Committee on the Murray River House of Assembly July 2001 Hon Mark Brindal MP MINISTER FOR WATER RESOURCES

Vini Ciccarello MEMBER FOR NORWOOD

Kris Hanna MEMBER FOR MITCHELL

John Hill MEMBER FOR KAURNA

Peter Lewis MEMBER FOR HAMMOND

Karlene Maywald MEMBER FOR CHAFFEY


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PRIORITY RECOMMENDATIONS The Committee has developed detailed recommendations addressing all major issues affecting the River Murray, particularly those of specific relevance to South Australia (see Recommendations). However, recognising that there are many demands to be met with limited resources, the Committee has also identified 10 priority action areas to provide clear and immediate direction for future management of the region.

1. SALINITY / ICM / WATER ALLOCATIONS / WETLANDS • The Committee recommends that the South Australian Government take all

necessary action to ensure that: − South Australia’s salinity obligations under the Salinity and Drainage Strategy

are in balance by December 2002 (see Section 4.2). − South Australia’s targets for catchment health1 under the Murray Darling Basin

Ministerial Council’s Integrated Catchment Management Policy Statement are defined by December 2002.

− Policies to address the current imbalance between South Australia’s water allocations and the Cap on water use are in place and being implemented by 2003.

− Works and water management policies to re-establish wetting and drying cycles for more than 50 per cent of South Australia’s highest priority wetlands along the River Murray are implemented by 2006.

2. WATER MANAGEMENT The Committee recommends that:

• The Murray-Darling Basin Ministerial Council develop and implement a joint Basin-wide program which will increase the median flow at the Murray Mouth by an additional one percent per year over 20 years between now and 2025. The focus of this plan should be to:

− reduce evaporative losses from the major regulating storages − improve water distribution infrastructure, and − improve on-farm water management practices.

(Median flows at the Murray Mouth for the 1993/94 level of development should be used as the benchmark to evaluate the program.)

• Funding of the joint program be shared equally (50:50) between the partner states and the Commonwealth Government. Each state’s contributions to the program to be determined in proportion to water use.

3. LOWER MURRAY RECLAIMED IRRIGATION AREA The Committee recommends that:

• The South Australian Government establish, in partnership with the irrigation industry and local irrigators, a demonstration swamp to assess the capability and suitability of ‘sprayline’ irrigation technology.

• The South Australian Government acknowledge that the rehabilitation of the Lower Murray Reclaimed Irrigation Area is a high priority and commit the necessary resources to complete rehabilitation of this area by 2005.

1 Targets for catchment health relate to aspects of water quality, water sharing, riverine ecosystem health and terrestrial biodiversity.


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4. MURRAY-DARLING BASIN COMMISSION The Committee recommends that:

• The Murray-Darling Basin Ministerial Council give consideration to the composition of the Murray-Darling Basin Commission with the aim of changing it to an independent, expert (skills-based) Commission. The Commission must contain skills in ecology and natural resource management, irrigation technology, engineering, finance and business administration, resource economics, law, regional development and public administration.

• The structure of the new Commission be: − an independent President − six Commissioners who between them have extensive experience and/or

qualifications in the disciplines of ecology and natural resource management, irrigation technology, engineering, finance and business administration, resource economics, law and regional development

− a senior bureaucrat from each of the Murray-Darling Basin Initiative partners − Chair, Community Advisory Committee (non-voting member) − Chief Executive Officer, Office of the Murray-Darling Basin Commission (non-

voting member). • The model used to appoint Directors to Research and Development Corporations

under the Commonwealth’s Primary Industries and Energy Research and Development Act, 1989 be applied to the appointment of Commissioners, with responsibility for the selection process delegated to the Chair, Murray-Darling Basin Ministerial Council.

• The appointment process, where possible, seek to obtain a reasonable geographic spread of Commissioners from across the various Basin states.

5. WATER TRADE The Committee recommends that:

• The Murray-Darling Basin Ministerial Council through the Commission resolve the environmental and administrative issues identified by the Pilot Interstate Water Trading project, and then adopt the necessary policies and processes to facilitate permanent water trading across the entire Basin. These policies and processes should be formalised under Schedule E to the Murray-Darling Basin Agreement.

• The South Australian Government establish a National Water Exchange to oversee the administration and management of the water market in the Murray-Darling Basin and foster the development of market based mechanisms in other areas of natural resource management, such as carbon credits and salinity credits.

6. WATER CONSERVATION The Committee recommends that:

• By 2004, the South Australian Government develop and commence implementation of an integrated water management strategy for metropolitan Adelaide that will reduce water diversions from the River Murray for Adelaide’s water supply by 50 per cent of the current level of diversions over a twenty year timeframe.

• The Commonwealth Government introduce tax changes that will permit private investment in accredited water saving devices and technology to be 100 per cent tax deductible in the year of expenditure.

7. WATER QUALITY The Committee recommends that:


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• The South Australian Government work in partnership with local councils to remove all remaining effluent ponds from the River Murray floodplain by January 2005.

• The River Murray Catchment Management Board work in partnership with Local Government to control stormwater runoff and leakage from septic tanks in rural towns.

• The South Australian Government in cooperation with the Murray-Darling Basin Commission initiate investigations that will direct irrigation drainage water to disposal basins outside of the riverine environment and lead to the progressive decommissioning of floodplain drainage basins.

8. SNOWY MOUNTAINS HYDRO-ELECTRIC SCHEME CORPORATISATION AND ENVIRONMENTAL FLOWS

The Committee recommends that:

• All stakeholders exercise due diligence in achieving the environmental flow objectives for the Snowy River by ensuring that the health of the River Murray system and security of water supply is not compromised.

• Commonwealth, NSW and Victoria not proceed with corporatisation until the Murray-Darling partners have reached agreement on the changes required to the Murray-Darling Basin Agreement. Actions to finalise Snowy corporatisation arrangements should not be implemented before complementary amendments to the Murray-Darling Basin Agreement are agreed by all parties to that agreement.

• All parties accept that the environmental flows debate has moved on, from an emphasis on the Snowy, to a realisation that environmental flows are necessary for both the Snowy and the Murray-Darling Basin. The needs of both river systems are inextricably linked. It makes no sense to treat the Snowy environmental needs in isolation from those of the Murray. All parties need to promote a joint approach to the pursuit of water savings for environmental flows for both the Snowy and the Murray The most effective way to do this is to integrate the pursuit of savings for the Snowy and the Murray in the one entity.

• In order to ensure an integrated approach to the pursuit of environmental water for both the Snowy and the Murray, the Committee recommends that a single body be established by a single agreement of all Murray-Darling partners instead of the current proposal for a Joint Government Enterprise.

9. FUNDING ADMINISTRATION AND PROGRAM DELIVERY The Committee recommends that:

• Within the Murray-Darling Basin, the Murray-Darling Basin Ministerial Council and Commission assume responsibility and accountability for the administration and allocation of environmental and natural resource management investment under programs such as the Natural Heritage Trust and National Action Plan for Salinity and Water Quality.

10. MONITORING AND REVIEW The Committee recommends that:

• The South Australian Parliament establish a Standing Committee for Water Resources to ensure that the Parliament has oversight of issues associated with the management and use of all water resources in South Australia.

• The new Standing Committee for Water Resources be required to provide the Parliament with a biennial report on the implementation of this Committee’s recommendations and other matters.


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RECOMMENDATIONS In addition to the priority recommendations the Select Committee has developed a wider collection of recommendations. The Committee believes that effective implementation of all recommendations will, over time, lead to a significant improvement in the condition and health of the land, water and other environmental resources of the South Australian Murray-Darling Basin and the wider Murray-Darling system.

Institutional frameworks This section of the report outlines a range of institutional changes that the Committee believes are necessary to deliver integrated catchment management within the South Australian Murray-Darling Basin. Figure 1 illustrates the proposed new integrated catchment management framework for the South Australian Murray-Darling Basin.

INTEGRATED CATCHMENT MANAGEMENT The Committee recommends that:

1. With the exception of the timetable for setting targets, the ICM framework outlined by the Murray Darling Basin Ministerial Council in the ICM Policy statement be adopted as the way forward to address environmental and natural resource issues impacting on the Basin’s sustainability.

2. The South Australian Government adopt a similar approach to that of the ICM framework to apply across the entire State.

3. The South Australian Government initiate legislative change that will support physical catchment boundaries to delineate suitable scale planning and management units for the administration and delivery of all environmental and natural resource management programs.

4. The South Australian Government demonstrate Basin wide leadership and seek to accelerate the ICM target setting timetable by defining and adopting South Australia’s targets for catchment health by December 2002.

5. A lead Minister responsible for the SA Murray-Darling Basin should be appointed by the government of the day and work with the ministerial portfolios for environment, water, natural resources, planning and regional development to deliver integrated catchment management in the SA Murray-Darling Basin.

6. The South Australian Government establish a high level River Murray Coordinating Committee to:

• oversee and coordinate the implementation of an integrated catchment management framework in the South Australian Murray-Darling Basin

• advise the Minister in relation to the planning, development and management of the South Australian Murray-Darling Basin’s natural resources

• assist the Minister to develop measures for the equitable, efficient and sustainable use of the South Australian Murray-Darling Basin’s natural resources

• give effect to any policy or decision of the Minister. 7. The River Murray Coordinating Committee (RMCC) should report to the Minister

responsible for the South Australian Murray-Darling Basin.

MURRAY-DARLING BASIN AGREEMENT The Committee recommends that:


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8. The Murray-Darling Basin Ministerial Council initiate a comprehensive consultative review of the Murray-Darling Basin Agreement which will have specific regard to:

• water-sharing principles and provision of water for the environment • financial and cost-sharing arrangements • integrated catchment management • decision making processes of the Murray-Darling Basin Commission and

Ministerial Council • the boundary of the Murray-Darling Basin as defined by Schedule B to the

Agreement.

RIVER MURRAY CATCHMENT WATER MANAGEMENT BOARD The Committee recommends that:

9. The River Murray Catchment Water Management Board’s resource planning functions and powers, where necessary, be expanded to include those relevant to soil conservation, native vegetation management and animal and plant control under the respective South Australian statutes. This may require legislative change.

10. To reflect the change in functions and powers, the Board be renamed the River Murray Catchment Management Board (RMCMB). This may require legislative change.

11. The new River Murray Catchment Management Board would report to the lead Minister responsible for the South Australian Murray-Darling Basin and be the dedicated regional authority for the delivery of integrated catchment management programs.

12. A senior member of the River Murray Co-ordinating Committee (RMCC) be a member of the new River Murray Catchment Management Board.

LOCAL GOVERNMENT The Committee recommends that:

13. The new River Murray Catchment Management Board establish strong working partnerships (including economic cost-sharing) with all local government authorities in the region and actively engage local government in regional catchment management and planning processes.

14. Local Government should be encouraged over time to align existing Council boundaries with the boundary of the River Murray Catchment Management Board.

LOCAL ACTION PLANNING GROUPS The Committee recommends that:

15. The new River Murray Catchment Management Board provide Local Action Planning Groups with administrative support and a base level of operational funding.

16. The current Local Action Planning framework be reviewed with a view to rationalising the number of Local Action Planning Groups operating within the South Australian Murray-Darling Basin.

17. The role of Local Action Planning Groups be redefined to become Local Action Planning and Implementation Groups to reflect a change from planning to on-ground action, conditional on them complying with project implementation standards which are focussed on defined outcomes.

18. One of the key roles of the new River Murray Catchment Management Board and the River Murray Co-ordinating Committee be to ensure that Local Action Planning and Implementation Groups have direct access to professional and technical expertise within government.


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Figure 1 - Proposed integrated catchment management framework for the SA Murray-Darling Basin.


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Salinity

SALINITY AND DRAINAGE STRATEGY The Committee recommends that:

19. The South Australian Government seek the support and commitment of additional national financial resources to accelerate implementation for the current program of salt interception works agreed under the Salinity and Drainage Strategy.

DRAFT BASIN SALINITY MANAGEMENT STRATEGY The Committee acknowledges and supports:

20. The shared target under the Draft Basin Salinity Management Strategy of less than 800 EC 95 per cent of the time at Morgan.

The Committee recommends that:

21. Prior to South Australia Government agreeing to new arrangements under the Basin Salinity Management Strategy, the salinity modelling used to predict future salt loads from the Mallee zone be better researched, reviewed and independently validated.

22. Salinity benefits to be derived from changes to the seasonal management of flow to South Australia and a reduction in Basin-wide diversions be given stronger consideration in the final Basin Salinity Management Strategy.

The Committee notes that the Draft Basin Salinity Management Strategy proposes to continue the principle, established under the Salinity and Drainage Strategy, that each State is accountable for off-setting the salinity impacts of new development (post-1988) on the River and recommends that:

23. All partner governments accept shared responsibility for offsetting the salinity impacts as a consequence of decisions on land and water use over the past 150 years of development (that is, the ‘legacy of history’ salinity impacts).

24. In keeping with the National Action Plan framework, that the Commonwealth contribute 50 per cent of the capital costs of all new projects to offset the ‘legacy of history’ salinity impacts, with the remaining 50 per cent (that is, capital, operating and maintenance costs) to be shared equally between New South Wales, Victoria and South Australia.

SOUTH AUSTRALIAN RIVER MURRAY SALINITY STRATEGY The Committee recommends that:

25. As a matter of high priority, the South Australian Government define areas of low, medium and high salinity impact risk, as proposed in the recently released River Murray Salinity Strategy.

26. The South Australian Government under the River Murray Salinity Strategy develop and implement effective planning and administrative policies and processes to:

• ensure that all irrigators are accountable for the salinity impact resulting from their irrigation practices

• manage ‘ribbon’ irrigation development adjacent to the River Murray • direct all future irrigation development to areas of low salinity impact risk • encourage existing irrigation development to move from areas of high impact to

areas of low impact.


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27. As a matter of high priority, the South Australian Government allocate additional resources towards finalising and implementing Land and Water Management Plans in South Australia.

28. The South Australian Government develop strategic alliances with the private sector that will foster research and development into new salt-based industries.

NATIONAL ACTION PLAN FOR SALINITY AND WATER QUALITY (NAP) The Committee recommends that:

29. The Murray-Darling Basin Ministerial Council and Commission must be actively and directly involved in planning and co-ordinating the implementation of actions under the NAP in the nine priority catchment areas within Murray-Darling Basin.

30. The Murray-Darling Basin Ministerial Council assume responsibility for the administration and delivery of NAP funding for salinity and water quality initiatives in the nine priority catchments within the Murray-Darling Basin.

The Cap The Committee recommends that:

31. The Commonwealth Government, through the Murray-Darling Basin Ministerial Council, the Council of Australian Governments (COAG) Water Reforms and National Competition Policy processes, prevail on all Basin states to:

• finalise the details and implementation of the current Cap on water diversions in the Murray-Darling Basin

• initiate investigations to determine the level of water diversions that will result in median flows at the Murray Mouth being restored to at least 40 per cent of natural median flows

• develop and implement policies that will achieve considerable water savings and improve on-farm irrigation practices.

Environmental flows and the riverine environment The Committee recommends that:

32. As a matter of high priority, the South Australian Government direct the Department for Water Resources and the River Murray Catchment Management Board to prepare and implement a flow management strategy for the River Murray.

33. South Australia Government seek assurances from the Murray-Darling Basin Ministerial Council and Commission that the activation of water for environmental purposes in upstream States will not have a detrimental impact on flows reaching South Australia.

34. The Murray-Darling Basin Ministerial Council establish a ‘Water Conservation Trust’ for the Lower Murray-Darling to which water will be allocated for environmental and system maintenance purposes.

35. The Water Conservation Trust be managed by an independent Water Conservation Trust Board which reports directly to the Murray-Darling Basin Ministerial Council.

36. The Ministerial Council specify the criteria (that is, skills and expertise) against which appointments to the Water Conservation Trust Board should be assessed.

37. The model used to appoint Directors to Research and Development Corporations under the Commonwealth’s Primary Industries and Energy Research and Development Act, 1989 should be applied to the appointment of Directors to the Water Conservation Trust


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Board. Responsibility for the selection process should reside with the Chair, Murray-Darling Basin Ministerial Council.

38. The Water Conservation Trust Board be supported by the Environmental Manager located within the Office of the Murray Darling Basin Commission.

39. The Murray-Darling Basin Ministerial Council direct the Commission to undertake a comprehensive review of all existing operating rules within the Murray-Darling system to identifying changes to flow management that will:

• reconnect the floodplain with the main river channel in the Lower Murray-Darling, and

• restore small and medium flow events to the River Murray in South Australia.

WETLAND MANAGEMENT The Committee recommends that:

40. The South Australian Government establish a new River Murray Wetlands Management Committee to address the long standing issues associated with management of River Murray wetlands and provide relevant direction and support to Local Action Planning and Implementation Groups. The activities of the Committee should be coordinated and overseen by the River Murray Co-ordinating Committee.

41. Responsibility for improving the management of wetlands be clearly assigned within government and over sighted and driven by the River Murray Co-ordinating Committee.

42. The South Australian Government, in consultation with the new River Murray Catchment Management Board and the Local Action Planning and Implementation Groups (LAPIGs), invest in new wetland management officers for the region who will work directly with the Board and LAPIGs to provide the necessary technical and scientific support to restore high priority wetland ecosystems.

Community involvement The Committee recommends that:

43. The South Australian Government establish a South Australian Community Advisory Forum (SACAF) as the peak community body in South Australia. The SACAF will provide advice on issues relating to the sustainable management of the environmental and natural resources of the South Australian Murray-Darling Basin to the:

− new River Murray Catchment Management Board − Community Advisory Committee, and − Minister responsible for the SA Murray-Darling Basin.

44. Membership of the SA Committee Advisory Forum be comprised of South Australia’s representatives on the Murray-Darling Basin Community Advisory Committee, the Chairperson from each of the South Australian Local Action Planning and Implementation Groups, and representatives from each of the Murray-Darling Association zones within South Australia.

Water use and management

FLOW AND RIVER REGULATION The Committee recommends that:

45. The Murray-Darling Basin Ministerial Council instruct the Murray-Darling Basin Commission to conduct an audit of infrastructure to:


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• determine whether the purpose of existing infrastructure could be expanded from that of simply providing a stable pool for consumptive extraction to also provide enhanced environmental outcomes

• identify items of existing infrastructure that are surplus to river regulation requirements which should be decommissioned

• prepare a program of works that will reduce evaporative losses from the system (that is, regulating storages) and improve water management within the system.

WATER ALLOCATIONS AND METERING The Committee recommends that:

46. The South Australian Government initiate through the River Murray Catchment Management Board’s Water Allocation Plan policies to address the current imbalance between South Australia’s water allocations and the maximum permissible water use under the Murray-Darling Basin Cap.

47. The water allocations reclaimed be re-allocated to the Water Conservation Trust for the Lower-Murray Darling.

48. Metering of the Lower Murray Swamps Irrigation Area be an integral component of that area’s rehabilitation.

49. The Murray-Darling Basin Ministerial Council establish a Basin-wide policy framework for water management that will result in application of volumetric water allocations across the entire Basin.

WATER USE The Committee recommends that:

50. Irrigators be encouraged and assisted to achieve more efficient on-farm irrigation practices.

51. All irrigators report their water use efficiency against targets of 85 per cent efficiency. 52. The South Australian Government and the new River Murray Catchment Management

Board work with irrigators to ensure 80 per cent of South Australia’s irrigators achieve best practice irrigation management by 2005 and 100 per cent of irrigators by 2010.

53. The Murray-Darling Basin Ministerial Council agree to a policy that all water diversions from the rivers and tributaries of the Murray-Darling Basin (excluding stock and domestic) be metered by 2005.

IRRIGATION WATER SAVINGS The Committee recommends that:

54. The Murray-Darling Basin Ministerial Council, as part of its environmental flows program, undertake a comprehensive and transparent Basin-wide investigation into water savings to be achieved through the rehabilitation of the major irrigation water delivery systems and improved on-farm irrigation practices.

DROUGHT MANAGEMENT STRATEGY FOR MURRAY-DARLING BASIN The Committee recommends that:

55. The South Australian Government encourage the Murray-Darling Basin Ministerial Council to prepare a drought management strategy for the Murray-Darling Basin.


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Biodiversity The Committee recommends that:

56. The South Australian Government through the Department for Environment and Heritage conduct a biological survey of the River Murray corridor as a matter of high priority.

57. The River Murray Catchment Management Board, within its Catchment Management Plan, outline a plan of action for the control of threatening processes to habitat areas within the South Australian Murray-Darling Basin.

58. The Commonwealth Government make considerable new national investment available to landholders and community groups across the region to control threatening processes, such as pest plants and animals, and protect and manage areas of remnant native vegetation for conservation purposes.

59. The South Australian Government conduct a review of cost-sharing arrangements under the various programs for land, water and biodiversity management within the South Australian Murray-Darling Basin.

Land management

LAND USE PLANNING POLICIES AND ZONING The Committee recommends that:

60. As a matter of high priority, the South Australian Government initiate with the relevant local government authorities and the River Murray Catchment Management Board a comprehensive regional review of development policies, water management policies and land use zoning within the River Murray corridor and its surrounding environs.

Research and development The Committee recommends that:

61. The South Australian Government establish a Centre of Excellence that will bring a range of relevant research and development expertise (for example, CSIRO, Cooperative Research Centres, Research and Development Corporations) together under an integrated salt management program to:

• foster and support regional development in new salt based industries, such as inland saline aquaculture and salt harvesting

• develop new, commercially viable farming systems for low rainfall areas which will reduce the rate of groundwater recharge

• breed new varieties of salt-tolerant crops. 62. Research and development initiatives such as the Mallee Sustainable Farming Project

be encouraged and supported.

Investment in the Murray-Darling Basin

NATIONAL RIVER MURRAY FUND The Committee recommends that:

63. The Commonwealth Government give serious consideration to the establishment of a 20-year National Murray-Darling Basin Fund for public investment in works and measures that will restore the ecological health of the Murray-Darling system and maintain agricultural productivity.


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CAPACITY BUILDING The Committee recommends that:

64. The South Australian Government’s employment policies reflect greater government investment in water, environmental and natural resource management expertise and ensure that South Australia has the capacity to fulfil its legislative and administrative responsibilities in the longer term.

COST-SHARING ARRANGEMENTS FOR ON-GROUND WORKS The Committee recommends that:

65. The South Australian Government, through the Murray-Darling Basin Ministerial Council, undertake a Basin-wide review of the effectiveness and suitability of current cost-sharing arrangements for on-ground works under programs such as the Natural Heritage Trust.

Inland fishery The Committee recommends that:

66. The South Australian Government in cooperation with the Murray-Darling Basin Commission initiate a program of works that will restore effective fish passage from the Murray Mouth to the South Australia - New South Wales border.

67. The Committee, on the basis of evidence presented to it, concurs with the findings of the Environment, Resources and Development (ERD) Committee and recommends that the South Australian Government implement all of the ERD Committee’s recommendations (see Appendix C).

DRAFT NATIVE FISH MANAGEMENT STRATEGY FOR MURRAY-DARLING BASIN The Committee recommends that:

68. The Murray-Darling Basin Ministerial Council accelerate the finalisation of the Draft Native Fish Management Strategy for the Murray-Darling Basin and prepare an action plan for its implementation.

Communication, education and information sharing The Committee recommends that:

69. The lead Minister in South Australia table the Committee’s report at the next meeting of the Murray-Darling Basin Ministerial Council for consideration.

70. The South Australian Minister for Water Resources should promote this report for educational purposes.

COMMUNITY FORUM The Committee recommends that:

71. The Murray-Darling Basin Ministerial Council direct the Murray-Darling Basin Commission to convene a Basin-wide forum to consider the recommendations outlined in this report.


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1 INTRODUCTION

1.1 Appointment of Committee On Thursday 18 November 1999 the House of Assembly passed a resolution, (on the motion of Mr Hill, Member for Kaurna), for the appointment of a Select Committee on the Murray River to investigate and make recommendations on various issues concerning the River Murray.

1.2 Terms of Reference The terms of reference for this Select Committee are as follows:

To consider and report on the following matters of importance in relation to the Murray River with particular reference to –

(a) the state of the environment of the Murray River particularly as it affects South Australia and including – i environmental and economic flow management, and; ii riparian and flood plain management;

(b) economic values and sustainability; (c) river regulation and State and Federal controls; and (d) any other relevant matters.

1.3 Membership The House of Assembly appointed the following Members to the Committee –

Hon Mark Brindal MP (Minister for Water Resources) * Ms Vini Ciccarello (Member for Norwood) Mr Kris Hanna (Member for Mitchell) Mr John Hill (Member for Kaurna) Hon Dorothy Kotz MP (Minister for Local Government) ** Mr Peter Lewis (Member for Hammond) Ms Karlene Maywald (Member for Chaffey) Hon David Wotton (Member for Heysen) * Appointed from 28 March 2000 ** Appointed until 28 March 2000

Following a change in membership to the Committee, the Hon David Wotton was elected as Chairman on 12 April 2000, Mr David Pegram was initially assigned as Committee Secretary and subsequently replaced by Mr Paul Collett on 13 March 2001. On 15 February 2000, the Committee appointed Mr Mark Faulkner as Research Officer.

1.4 Committee Powers Pursuant to House of Assembly Standing Order 335 the House determined that the Committee “have power to send for persons, papers and records and to adjourn from place to place.”


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1.5 Chairman’s vote While the Chairman of a Select Committee does not have a deliberative vote, pursuant to Standing Order 328 the Chairman “has a casting vote only” in the event of an equality of votes.

1.6 Disclosure of Evidence ADMISSION OF THE PUBLIC AND MEDIA. In accordance with Standing Order 338, members of the public and media were able to be present at Committee meetings, except when deliberative.

DISCLOSURE OF EVIDENCE. On Thursday 30 March 2000, the House of Assembly resolved to suspend Standing Order 339 thereby allowing the Committee to disclose evidence prior to reporting its findings. Accordingly the Committee passed the following motion:

That, unless otherwise agreed, all meetings of the Select Committee at which evidence is presented be open to the Media and public and the evidence may be disclosed. In addition, all evidence given to date, other than that given in camera, be authorised for release.

The Committee also reserved the right to hear evidence in camera and withdraw leave for the release of evidence at any time.

TRANSCRIPTS OF EVIDENCE ON THE INTERNET. At its meeting on Tuesday 27 June 2000, the Committee resolved to allow for the official transcripts of evidence taken from witnesses to be published on the parliamentary web site. The transcripts can be viewed at: http://www.parliament.sa.gov.au – click on the “Hansard” then choose “Committees” followed by “Select Committee on the Murray River”.

1.7 Conduct of Inquiry During the course of this inquiry, the Committee received 94 written submissions and 85 papers and publications from various representative individuals and organisations. These individuals and organisations are recognised in Appendix A of this Report. The Committee also received verbal evidence from over 75 witnesses representing various private, association/organisation and government concerns. These witnesses are detailed in Appendix B. Over a 20 month period, the Committee met on 36 occasions including 4 separate site visits to Albury, Canberra, Bourke and the Lower Murray. Finally, the Committee tabled an Interim Report in July 2000, which overviewed the evidence given at that time without making any conclusive finding or recommendation. This Report incorporates all evidence and submissions received during the whole of the inquiry, not withstanding they may have been referred to on a previous occasion.


http://www.parliament.sa.gov.au/

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2. BACKGROUND

2.1 Key achievements to date There have been many achievements associated with improving the management of the natural resources of the Murray-Darling Basin. These achievements may vary in magnitude and significance, but each plays an important part in moving towards ecologically sustainable development of the Basin’s natural resources. With the current focus on the problems confronting the River Murray and the Murray-Darling Basin, the Select Committee believes that it is important to step back and reflect upon the key achievements that have been made. Recognising these achievements provides a basis from which we can move forward. This section provides an overview of key achievements since 1985.

MURRAY-DARLING BASIN MINISTERIAL COUNCIL The Murray-Darling Basin Ministerial Council was established in 1985, comprising ministers holding land, water and environment portfolios within the governments of South Australia, New South Wales, Victoria, Queensland and the Commonwealth. An Australian Capital Territory minister is a non-voting member of the Ministerial Council by a Memorandum of Understanding (MOU). Establishment of the Council marked a significant shift in approach to the management of natural resources in the Murray-Darling Basin. The predominant focus on water sharing and management has now given way to an understanding that to reduce the risk to water supplies and ecosystem health, we need to manage the natural resource base of the whole basin – an integrated catchment approach.

CONTINUOUS WATER ACCOUNTING In 1988, the Ministerial Council agreed to continuous water accounting between New South Wales and Victoria. The Commission now keeps account of how much water these States use whilst ensuring that South Australia’s legal entitlements under the Murray-Darling Basin Agreement are fully protected.

SALINITY AND DRAINAGE STRATEGY The Salinity and Drainage Strategy came into effect in January 1988, although the Ministerial Council did not formally adopt it until April 1989. The Strategy (a schedule to the Murray-Darling Basin Agreement) provides a framework for joint action by the New South Wales, Victorian, South Australian and Commonwealth governments to effectively manage water-logging and land salinisation in the irrigation districts of the Murray Valley in New South Wales and Victoria and River salinity in the Lower Murray-Darling. Under the Strategy, South Australia is accountable for putting in place measures that will offset the impact of post-1988 irrigation development on River salinity. The Strategy was a world first. It incorporated cross-jurisdictional trading in pollution rights for works and measures that would either reduce or increase River salinity. The Strategy is based on a balance between engineering (salt interception schemes, such as Woolpunda and Waikerie) and non-engineering (land and water management plans) solutions. Since its inception, the Strategy has reduced salinity in the River Murray at Morgan by approximately 60 EC units. This is over and above gains brought about by changes to operating procedures at two major water storages - Menindee Lakes and Lake Victoria. These changes have removed very large peaks in River salinity and provided an additional net salinity improvement of approximately 28 EC units at Morgan.


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NATURAL RESOURCES MANAGEMENT STRATEGY - INTEGRATED CATCHMENT MANAGEMENT The Murray-Darling Basin Commission institutionalised the concept of community-driven integrated catchment management across the entire Murray-Darling Basin through the Natural Resources Management Strategy in 1989. Through this initiative, Catchment Management Committees have been established for each major river in the Basin. Working in partnership with governments, these committees design and implement on-ground works to address a range of natural resource issues in their respective catchments. The Murray-Darling Basin Ministerial Council now seeks to build on the success of the Natural Resource Management Strategy and commitments itself to a new Integrated Catchment Management Policy framework until 2010.

THE ‘CAP’ Following an audit of water use in the Murray-Darling Basin, the Murray-Darling Basin Ministerial Council agreed in 1995 to an interim cap on all diversions from the Basin’s rivers at 1993-94 levels of development. The interim cap was subsequently made permanent in December 1996. This decision, now commonly referred to as ‘the Cap’, was one of Council’s most important initiatives. It seeks to obtain a balance between the consumptive and instream uses of the Basin’s water resources, and provides some margin of safety for any further changes that may have an adverse impact on water quality (such as dryland salinity). In 1996, the Ministerial Council also directed that the Cap be reviewed by June 2000.

INTERSTATE WATER TRADING – PILOT PROJECT In November 1997, the Murray-Darling Basin Ministerial Council agreed to the establishment of a pilot project that would introduce trade in permanent interstate water property rights in the Mallee region – from Nyah to the Barrages. By facilitating such trade, the project sought to promote increased water use efficiency. It also aimed to assist the irrigation industry to become more economically sustainable by facilitating the movement of water from low-value irrigation activities to higher-value irrigation developments that are subject to environmental controls, such as Irrigation and Drainage Management Plans (IDMP). Preliminary data from the pilot project shows that water is moving from low-value to higher-value irrigation activities, with South Australia being a major beneficiary. Since the project started in 1998, more than 10 gigalitres of water has been traded with 8.7 gigalitres of water traded into South Australia.

NATURAL HERITAGE TRUST FUNDING The Murray-Darling Basin Initiative has been a major beneficiary of funding for natural resource management under the Natural Heritage Trust and other natural resource programs. Since the inception of the Natural Heritage Trust program in 1997-98, South Australia , has attracted more than $7 million per annum for natural resource management activities within the Murray-Darling Basin.

BASIN SALINITY AUDIT The 1999 Basin Salinity Audit revealed that without further intervention dryland salinity poses a rising threat to very important land and water resources, regional biodiversity and public and private infrastructure. Whilst these findings are sobering, the Audit itself rates as a major achievement. As a consequence of the Audit, there is greater recognition and understanding of the salinity problem, how it occurs and what is needed to address it effectively. Points highlighted by the Audit include:


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• The threat posed by salinity is more widespread and severe than previously recognised.

• Recent investment in salinity management has been in the right direction but insufficient to stabilise salinity at current levels.

• The scale of the problem and the interrelationship between causes and effects reinforces the importance of an integrated catchment management approach.

• New salinity management initiatives need to provide policy and management elements which that are flexible enough to accommodate local variations in impacts and costs, and the capacity of communities and governments to respond.

• We know that we have time to address the salinity issues confronting the Basin.

2.2 About the Murray-Darling Basin The Murray-Darling Basin is Australia’s largest river system covering an area of more than one million square kilometres, equivalent to 14 per cent of Australia’s landmass (Figure 2). On a world scale the Murray-Darling ranks fifteenth in terms of length and twenty-first in terms of area. While on these criteria, it is a major river system, it is small in terms of its discharge. Median annual outflow at the Murray Mouth, under natural conditions, is 11 880 gigalitres per year.

Figure 2 - Map of the Murray-Darling Basin. Source: MDBC, 2001


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The Basin is defined by the catchment areas of the Murray River and Darling River. The Darling is the longest river in Australia measuring 2 740 km from its source to its confluence with the Murray at Wentworth. The Murray is 2 530 km long from its source in the Australian Alps to its mouth on Encounter Bay in South Australia. The Basin extends over three-quarters of New South Wales, approximately two-thirds of Victoria, fifteen per cent of Queensland and seven per cent of South Australia and the entire Australian Capital Territory (excluding Jervis Bay) (Table 1). The Murray Darling Basin has 26 major catchment areas. The Upper Murray, Murrumbidgee and Goulburn catchments account for 45.4% of the Basin’s total mean annual runoff but only 11% of its area. In contrast, the Darling group of rivers contributes 31.7% of the Basin’s mean annual runoff from 60.4% of its area.

Table 1 – Area and mean annual water outflow of the Murray-Darling Basin as a percentage of each Basin State. Source: Crabb, 1997 State Total areas

of States (km2)

Area in MDB (km2)

% of States in

MDB

% of the area of

the MDB

% of mean

annual outflow

New South Wales 802 081 599 873 74.79 56.65 46.6 Victoria 229 049 130 474 59.96 12.32 36.6 Queensland 1 776 620 260 011 14.63 24.55 14.9 South Australia 984 395 68 744 6.98 6.49 0 Australian Capital Territory*

2 367 2 367 100.00 0.22 1.9

Totals 3 794 512 1 061 469 - 100.00 100.00 * - excludes Jervis Bay

Approximately 86% of the Basin contributes virtually no runoff to the river systems, except during extreme rainfall events.

Economic values

AGRICULTURE Agriculture, including irrigation, is the Basin’s major land use and the major economic activity, valued at approximately $10 billion per annum. This is approximately 40 per cent of the gross value of Australia’s total agricultural production.

MINING AND MINERALS PRODUCTION Mining and minerals production is important to many locations within the Basin. Overall, the industry is worth $1.66 billion, just over five per cent of the Australian total.

FORESTRY There is no specific data available concerning the overall value of forestry production in the Murray-Darling Basin. The only indicators are provided by two categories of the manufacturing industry – wood and paper products. In 1991-1992, these industry categories had turnovers of $601.1 million and $617.0 million, respectively. A significant part of the paper products group is accounted for by the newsprint mill at Albury.


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TOURISM AND RECREATION The Murray-Darling Basin’s natural environment – especially its water resources - and the many economic activities provide the basis for tourism and recreation, an industry valued at over $3.44 billion a year.

MANUFACTURING INDUSTRY The manufacturing industry is a significant activity in the Murray Darling Basin, in terms of numbers of establishments, employment, turnover, and range of activities. It is dominated by activities associated with the Basin's resource-based industries, in particular agriculture and, to a lesser extent, forestry and mining. Such enterprises (for example, abattoirs, wineries, flour mills, and saw mills) are scattered throughout the Basin, close to the sources of their raw materials. In 1991-92, for the whole of the Murray-Darling Basin, there were some 3280 manufacturing 'locations' (essentially establishments), employing over 62 400 people, with a turnover (essentially sales of goods produced) of over $10,750 million (6.4 per cent of the Australian total).

ELECTRICITY GENERATION The Basin occupies a unique place in Australian electricity generation in that it contains over three-quarters of the mainland's Hydro-electric Power (HEP) stations. The Snowy Mountains Hydro-electric Scheme is the largest scheme accounting for 71.7% of mainland’s capacity and 69.5% of the electricity generated from mainland hydro stations. There are another 25 HEP stations in the New South Wales and Victorian parts of the Basin with an additional five stations planned or proposed. Almost all of these are owned and operated by private companies.

Social values

POPULATION At the 1996 Census, the Murray-Darling Basin had an estimated population of 1 956 765 (compared with 1 899 081 in 1991), 10.94 per cent of the total Australian population. External to the Basin another million people are heavily dependent on the River Murray for their water supply.

ABORIGINAL AND EUROPEAN HERITAGE

Aboriginal heritage The Murray-Darling River system has been important to Aboriginal people for the entire period of their habitation of Australia. There are at least 10 000 known Aboriginal sites in the Basin, from all phases of their occupation, with the rivers and flood plains being of particular importance. Many are of great scientific value and of considerable significance to Aboriginal peoples. Aboriginal history extends over 45 000 years. Archaeological evidence from shell middens, quarries, rock shelters with archaeological deposits (for example, stone artefacts), open camp sites, rock paintings and engravings, burial grounds and the sacred and ceremonial sites are found throughout the Basin. Lake Mungo and other lakes of the Willandra system contain evidence from around 40 000 years ago. For example, in 1994, the lowering of water levels in Lake Victoria for maintenance purposes, revealed more than 10 000 Aboriginal burials dating back between 3000 and 4000 years, one of the largest burial sites ever discovered. Of more recent origin are the many carved and scarred trees from which such things as bark canoes, shields, boomerangs and carrying dishes were cut. These are to be found along


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most of the Basin's waterways. Many of the Aboriginal sites are listed on the Register of the National Estate.

European heritage The rivers of the Murray-Darling Basin hold great significance in terms of Australia's European heritage and have played an important role in European exploration and settlement. The use of the rivers for transportation made a major contribution to the settlement of the Basin and the development of the pastoral industry, especially from the 1850s. Paddle steamers supplied the towns and stations with their needs and carried wool and other products to markets. Goolwa, Morgan, Echuca and Bourke were major river ports, many features of which can still be observed today. Shipwrecks and other historical sites along the Basin’s rivers can also be found. The goldrushes of the 1850s have also left their mark on many parts of the Basin's landscape. In terms of heritage resources, this is especially true of a number of towns, such as Bendigo, Beechworth, Adelong, Peak Hill, and Sofala (Australia's oldest surviving gold town). Hill End, a gold rush village 80 kilometres north of Bathurst, remains almost untouched by modern development and is now an Historic Site. Much of Australia's history as a federation is associated with Canberra especially in terms of such buildings as Old Parliament House, the Australian War Memorial, and Anzac Parade. In many of the towns and rural locations, as well as the local museums, there are commercial, government, and rural buildings of historical significance and heritage value. The Basin is an integral part of Australia's history and a vast and rich historical storehouse.

Environmental values

WETLANDS The Murray-Darling Basin is estimated to contain over 30 000 wetlands, most of them on private land. A 1986 study along the River Murray between its mouth to Lake Hume, together with the anabranch system of the Edward and Wakool rivers, revealed over 7000 wetlands, covering over 222 000 hectares. Most are small, with 83 per cent being 10 hectares or less in extent. Twenty seven wetlands extend over 500 hectares and account for 36 per cent of the total wetlands area. Australia wide, 49 wetlands have now been recognised as being of international significance and are listed under the 1971 Convention on Wetlands of International Importance (the Ramsar Convention). Ten of these wetlands are in the Murray-Darling Basin.

FLORA AND FAUNA At the time of European settlement the range of species included 85 mammals, 367 birds, 151 reptiles, 24 frogs and more than 30 fish species. Although some have become extinct and others are threatened, the Murray-Darling Basin is one of Australia's most important biodiversity regions.

PARKS AND RESERVES Many of Australia's most significant natural heritage features are preserved in national parks located in and on the borders of the Murray-Darling Basin. They encompass a great diversity of environments and many species of flora and fauna, some unique to locations within the Basin, ranging from areas of rainforest in the Great Dividing Range in Queensland, to the high alpine areas of the Snowy Mountains, to the arid areas of the far west. In total, the national parks and other reserves cover over seven million hectares, little more than seven per cent of the Basin's total area. Some of the parks contain areas of international


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significance. For example, the Willandra Lakes National Park in New South Wales is on the World Heritage list, the Kosciusko and Hattah-Kulkyne national parks are Biosphere Reserves and the Coorong National Park is listed as a wetland of international importance under the Ramsar Convention.

2.3 South Australia’s portion of the Murray-Darling Basin The South Australian portion of the Murray-Darling Basin covers 70 000 square kilometres or the equivalent of seven per cent of the State (Figure 3). This area is divided into three distinct landscape units: the riverine corridor (5%), the Eastern Mount Lofty Ranges and Murray Plains (15%), and the Murray Mallee (80%). The Eastern Mount Lofty Ranges includes 13 sub-catchments that drain to the River Murray and Lake Alexandrina. The length of the River Murray from the border with Victoria and New South Wales to its mouth near Goolwa is 640 kilometres. The river corridor includes more than 250 wetland complexes, two of which – Coorong and Lower Lakes, and Chowilla Floodplain System - are of international significance.

Figure 3 - Map of South Australian portion of the Murray-Darling Basin. Source: Department for Water Resources (SA).


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The River Murray is South Australia’s largest reliable surface water resource and is central to the social and economic development of the region and State. Irrigated horticulture and agriculture industries using River Murray water have contributed to the South Australian economy since the late nineteenth century. Major industries include wine grapes, dried fruits, citrus, almonds, stonefruits, dairying and vegetable crops. Irrigation development has grown to more than 52 000 hectares using less than 500 gigalitres of River Murray water per annum. In 1996/1997, the gross value of agricultural production, including value adding, was in excess of $700 million per annum or more than a quarter of the State’s total. In addition, dryland agriculture - cereal crops and livestock grazing - within the South Australian Murray-Darling Basin is estimated to be worth another $52 million per annum. Other important industries in South Australia such as manufacturing and recreation and tourism are either highly dependent or totally dependent on River Murray water. These industries are major employers within the State and estimated to contribute another $13 billion and $130 million per annum, respectively, to the State’s economy. River Murray water is distributed via an extensive network of pipelines across the State. The water needs of approximately 95 per cent of the State’s population are met, at least in part, by the River Murray. On average, the River Murray supplies approximately 40 per cent of Adelaide’s annual water supply. During dry years the River Murray’s contribution to Adelaide’s water supply can rise to as much as 90 per cent. Within the South Australian Murray-Darling Basin there is more than 700 000 hectares of conservation reserve. These reserves are spread across various landscape units and include Bookmark Biosphere Reserve, Billiatt, Ngarkat, Brookfield and the Coorong conservation parks.


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3. ADMINISTRATIVE AND INSTITUTIONAL ARRANGEMENTS

Management of the Murray-Darling Basin’s natural resources involves a large number of organisations. These include government, industry and community groups, all of which operate at various levels – Basin wide, State, regional, local. This section seeks to identify the various statutory and non-statutory organisations and clarify their respective roles and responsibilities. Figure 4 is a schematic diagram showing various organisations involved in natural resource management activities across the South Australian Murray-Darling Basin.

Figure 4 – Schematic diagram of the various organisation involved in natural resource management in the Murray-Darling Basin.


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3.1 Murray-Darling Basin Initiative The Murray-Darling Basin Initiative is the largest integrated catchment program in the world, covering an area of over one million square kilometres. The Initiative was established by the Murray-Darling Basin Agreement, which was signed by the Governments of the Commonwealth, New South Wales, Victoria, and South Australia in 1987. Queensland became a party to the Agreement in 1996 under specific terms set out in Schedule D to the Agreement and the Australian Capital Territory became a participant in 1998. The 1992 Agreement was recognition of the fact that no one government or group of people was able to deal with the Basin’s emerging problems and that the existing management arrangements were not able to adequately address these problems. Furthermore, the involvement of the community, through the Community Advisory Committee and Natural Resources Management Strategy, recognised that the task was not one that governments could fulfil on their own. The Initiative has had a number of distinctive phases. Its inception focussed on promoting the principles of integrated catchment management and the development of joint community and government structures. More recently emphasis has been placed on the development and implementation of strategic, large-scale integrated catchment management plans and concentrating resources in areas of greatest need. The joint community and government structures remain as key mechanisms for implementing the integrated catchment management plans.

3.2 Murray-Darling Basin Agreement The 1992 Murray-Darling Basin Agreement provides the framework for the sharing and management of the resources of the Murray-Darling Basin. It is given effect through the Murray-Darling Basin Act 1993. The purpose of the Agreement is:

to promote and co-ordinate effective planning and management for the equitable, efficient and sustainable use of the water, land and other environmental resources of the Murray-Darling Basin.

The 1992 Murray-Darling Basin Agreement, is the most recent in a series of Agreements, It has evolved from a focus on water sharing arrangements toward an integrated approach to the management of the resources of the Murray-Darling Basin. This latest Agreement builds on previous arrangements and establishes a partnership between the Commonwealth, New South Wales, Victorian, South Australian and Queensland governments. This partnership is commonly referred to as the Murray-Darling Basin Initiative. The are a number of very important elements to the Agreement from South Australia’s perspective. One of these is a provision for a minimum entitlement flow to South Australia of 1850 gigalitres per annum.

3.3 Murray-Darling Basin Ministerial Council The Murray-Darling Basin Ministerial Council is the primary body responsible for formulating policy and providing the direction necessary to implement the Murray-Darling Basin Initiative. The Ministerial Council’s main functions2 are to:

• consider and determine major policy issues concerning the use of the Basin’s land, water and other environmental resources

2 MBDC 2000a p8


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• develop, consider and authorise (as appropriate) measures to achieve the purpose of the Agreement.

The Ministerial Council comprises those Ministers holding land, water and environment portfolios with the governments of New South Wales, Victoria, South Australia, Queensland and the Commonwealth. Up to three Ministers from each Government may sit on the Ministerial Council. The Australian Capital Territory (ACT) participates in the Initiative via a Memorandum of Understanding. Under the Memorandum, the ACT Government can take part in the planning and management of the Basin’s environmental resources, but not be involved in water management of the River Murray system. The ACT Government Minister is a non-voting member of the Ministerial Council.

3.4 Murray-Darling Basin Commission The Murray-Darling Basin Commission is the executive arm of the Ministerial Council and is responsible for:

• managing the River Murray and the Menindee Lakes system of the lower Darling River

• advising the Ministerial Council on matters related to the use of the water, land and other environmental resources of the Murray-Darling Basin3.

The membership of the Commission comprises an independent President and two Commissioners from each of the Initiative partner Governments (except the ACT which has one Commissioner) who between them represent water, land and environmental resource management interests for their respective jurisdictions. Each partner government also appoints Deputy Commissioners. Commissioners are generally chief executives or senior executives of government agencies responsible for land, water and environmental resources. The functions of the Commission4 are to:

• advise the Ministerial Council in relation to the planning and development and management of the Basin’s natural resources

• assist the Ministerial Council in developing measures for equitable, efficient and sustainable use of the Basin’s natural resources

• coordinate the implementation of, or, where directed by the Ministerial Council, to implement, those measures, and

• give effect to any policy or decision of the Ministerial Council. To achieve this, the Commission works cooperatively with partner governments, committees and community groups to:

• develop and implement policies and programs aimed at the integrated management of the Murray-Darling catchment, and

• manage and distribute the water resources of the River Murray system in accordance with the Murray-Darling Basin Agreement.

RIVER MURRAY WATER BUSINESS The Murray-Darling Basin Commission fulfils its water sharing and supply responsibilities through the internal business unit, River Murray Water. River Murray Water manages the river system to ensure that the available water is shared and supplied to South Australia, Victoria and New South Wales in accordance with the Murray-Darling Basin Agreement. It carries out this role through three main processes: 3 Ibid p10 4 MDBC 1992


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• assessing future availability of water • accounting for actual use of water, and • regulating river flows to meet environmental and user needs.

BASIN SUSTAINABILITY PROGRAM The Murray-Darling Basin Commission delivers its natural resource management responsibilities through the Basin Sustainability Program. This program, established by the Ministerial Council in 1996, is a critical aspect of the Murray-Darling Basin Initiative and is the planning, evaluation and reporting framework for the Natural Resources Management Strategy. The program has clearly defined objectives, key result areas and performance indicators to guide and report on all natural resources investments in the Basin. Key result areas are:

• sustainable agricultural activity • water quality, and • nature conservation.

3.5 Community Advisory Committee The Community Advisory Committee is an important component of the Murray-Darling Basin Initiative under the Murray-Darling Basin Agreement, reporting directly to the Ministerial Council. It advises the Ministerial Council whilst also providing a two-way channel of communication between the Ministerial Council and the wider Basin community. More specifically, the Community Advisory Committee’s terms of reference are to advise the Ministerial Council and the Commission on:

• natural resource management issues referred to the Committee by the Ministerial Council or the Commission, and

• the views of the Basin’s communities on matters identified by the Committee as being of concern.

The Community Advisory Committee comprises an independent Chairperson and 26 members, namely:

• 21 state representatives chosen on a catchment/regional basis, seven from New South Wales, five from Victoria, four from South Australia, four from Queensland, and one from the Australian Capital Territory

• a representative from each of four special-interest, ‘peak’ organisations (National Farmers Federation, Australian Conservation Foundation, Australian Local Government Organisation, and Australian Landcare Council), and

• a representative of the Aboriginal communities.

3.6 Legislative framework The use, allocation and management of the natural resources of the Murray-Darling Basin are controlled by several pieces of legislation in South Australia. With respect to the management of water resources in South Australia, the principal statute is the Water Resources Act 1997. Other important South Australian statutes associated with protection, conservation and management of the land, water and other environmental resources of the South Australian Murray-Darling Basin include:

• Animal and Plant Control (Agricultural Protection and Other Purposes) Act 1986 • Crown Lands Act 1972


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• Country Fires Act 1989 • Development Act 1993 • Environment Protection Act 1993 • Fisheries Act 1982 • Groundwater (Border Agreement) Act 1985 • Irrigation Act 1994 • Local Government Act 1999 • Mining Act 1971 • Murray-Darling Basin Act 1993 • Native Vegetation Act 1991 • National Parks and Wildlife Act 1972 • Soil Conservation and Landcare Act 1989 • Pastoral Land Management and Conservation Act 1989 • Waterworks Act 1932.

3.7 State agencies A large percentage of State Government agencies are involved in managing the natural resources of the Murray-Darling Basin in one way or another. Below is an overview of the roles and responsibilities of the various agencies.

DEPARTMENT FOR WATER RESOURCES The Department for Water Resources is the lead agency for the policy, management and administration of the State’s water resources under the Water Resource Act 1997. Important functions include water allocation and licensing, compilation and maintenance of information of the water resources of the State and implementation of the Council of Australian Governments (COAG) Water Reforms. The Department for Water Resources has a significant focus on securing the supply of good quality water for South Australia from the Murray-Darling Basin system. The Department for Water Resources is responsible for coordinating South Australia’s input to the Murray-Darling Basin Initiative.

PLANNING SA (DEPARTMENT FOR TRANSPORT, URBAN PLANNING AND THE ARTS) Planning SA is responsible for administering the Development Act, 1993. Under that Act, Planning SA prepares and maintains the Planning Strategy which provides strategic directions for planning and development in South Australia. The Development Act also requires that each local council prepare a Development Plan for its area, against which development proposals are assessed. Land management through land use planning and development controls is a critical factor in good catchment management.

PRIMARY INDUSTRIES AND RESOURCES SA Primary Industries and Resources SA (PIRSA) is responsible for fostering sustainable economic development throughout South Australia. PIRSA seeks to achieve this by providing irrigation and dryland farmers with advice on good land and water management practices. PIRSA also provides support to Landcare groups and Soil Conservation Boards. PIRSA provides professional and administrative support to the Soil Conservation Council established under the Soil Conservation and Landcare Act, 1989; the Animal and Plant Control Commission established under the Animal and Plant Control (Agricultural and Other


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Purposes) Act, 1986, and the Pastoral Board established under the Pastoral Land Management and Conservation Act, 1989. PIRSA is also responsible for administering inland and marine fisheries under the Fisheries Act, 1982.

DEPARTMENT FOR ENVIRONMENT AND HERITAGE The Department for Environment and Heritage (DEH) is responsible for administering water resource management obligations under the Environment Protection Act, 1993. These obligations are primarily concerned with protecting of water quality and controlling or minimising waste discharges. DEH is also responsible for administering the Native Vegetation Act, 1991 and the National Parks and Wildlife Act, 1972. It does this by providing professional and administrative support to the Native Vegetation Council and the National Parks and Wildlife Council.

SOUTH AUSTRALIAN WATER CORPORATION The South Australian Water Corporation is responsible for the provision of public water supplies and the collection, treatment and disposal of sewage. One of the Corporation’s primary objectives is to ensure that South Australia’s water and wastewater services are operated in a way that provides continuous high quality supply, protects the health of the public and minimises environmental impact. The South Australian Water Corporation is a user of River Murray water resources and is licensed to divert a nominal 180 gigalitres per annum of water for metropolitan and country water supply purposes.

River Murray Operation Unit In South Australia, the River Murray Operations Unit of the South Australian Water Corporation has assumed the responsibilities of the construction authority under the Murray-Darling Basin Agreement. This Unit is responsible for the construction, operation and maintenance of Murray-Darling Basin Commission assets from Lock and Weir 9 to the Barrages at the Murray Mouth.

3.8 Statutory bodies RIVER MURRAY CATCHMENT WATER MANAGEMENT BOARD The River Murray Catchment Water Management Board was established under the Water Resources Act 1997 in September 1997. The Board’s boundaries have recently been reviewed and expanded to take in both riverine and dryland areas of the South Australian portion of the Murray-Darling Basin. This change has aligned the Board’s boundaries more closely with those of the South Australian Murray-Darling Basin as defined under the Murray-Darling Basin Agreement (Figure 5) The Board has wide-ranging responsibilities and powers under the Act, including the ability to raise funds for activities to improve the health of the catchment and the condition of its water resources through a water resources levy. The Board must work to achieve the objects of the Act, including:

• recognising the need to protect water resources and associated ecosystems from degradation

• restoring those resources where they have already been degraded • maintenance or improvement in water quality • identifying opportunities for developing alternative sources of water, such as

reclaimed effluent and stormwater


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• encouraging members of the community to take an active part in water resource planning and management

• promoting public awareness of the importance of River Murray water and the sustainable use of these resources.

Figure 5 – Map showing the boundary of River Murray Catchment Water Management Board within the SA Murray-Darling Basin. Source: Planning SA


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Specific functions of the Board include:

• prepare and implement a catchment water management plan for the region, and • prepare water allocation plans for its prescribed water resources that will guide and

integrate the management of the region’s water resources to achieve the object of the Act.

WATER RESOURCES MANAGEMENT COMMITTEES Within the boundary of the River Murray Catchment Water Management Board are four prescribed water resources under the Water Resources Act 1997:

• the River Murray Prescribed Watercourse • the Angas-Bremer Prescribed Wells Area • the Mallee Prescribed Wells Area, and • the Noora Prescribed Wells Area.

Two Water Resources Planning Committees have been established under the Water Resources Act to prepare water allocation plans for the Mallee and Angas-Bremer Prescribed Wells Areas.

SOIL CONSERVATION BOARDS Soil Conservation Boards (SCBs) have been established across the agricultural and pastoral areas of South Australia under the Soil Conservation and Landcare Act, 1989. The boundaries of 10 separate Soil Conservation Boards are either entirely or partly within the South Australian Murray-Darling Basin: the Coorong and Districts, Southern Hills, Murray Mallee, Murray Plains, Eastern Districts, Central Hills, Northern Hills, Lower North, West Broughton and North-east Pastoral (Figure 6). Under the Act, the Boards are required to prepare a district plan describing best practice land manag

south australian select committee · 2006. 12. 15. · john hill member for kaurna peter lewis...

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